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Home / Business / Finance ministry to meet bank CEOs on Dec 5 to promote cross-border rupee trade

Finance ministry to meet bank CEOs on Dec 5 to promote cross-border rupee trade

Sources say meeting will be attended by other stakeholders who will review progress made on this front so far
Representational image.
Representational image.
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PTI   |   New Delhi   |   Published 30.11.22, 02:41 AM

The finance ministry has called a meeting of CEOs of banks, including the top six private sector lenders, on December 5 to discuss ways to promote cross-border trade in the rupee instead of the US dollar.

Sources said the meeting will be attended by other stakeholders, including senior officials of external affairs and commerce ministries, who will review the progress made on this front so far.

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Financial services secretary Vivek Joshi will chair the meeting. Representatives of the Reserve Bank of India and the Indian Banks’ Association may attend, sources said.

Following detailed guidelines from the RBI on cross-border trade transactions in the domestic currency in July, about nine special vostro accounts have been opened with two Indian banks to facilitate overseas trade in the rupee.

Sberbank and VTB Bank — the largest and second-largest banks of Russia, respectively — are the first foreign lenders to receive the approval.

RBI decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in the domestic currency.

Another Russian bank Gazprom, which does not have its branch in India, has also opened this account with Calcutta-based Uco Bank.

Talking point

■ On the agenda: Discuss ways to promote cross-border trade in rupee

■ Senior officials of the external affairs and commerce ministries will review the progress made so far

■ Financial services secretary Vivek Joshi will chair the meeting; Representatives of the RBI and Indian Banks’ Association may attend



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